JINHUIINC.(SH:603132) Haitong Securities·2024-10-27 06:44Investment Rating - The investment rating for the company is "Outperform the Market" and is maintained [1] Core Views - The company reported a significant increase in revenue and net profit for the first three quarters of 2024, with revenue reaching 1.102 billion yuan, a year-on-year increase of 30.6%, and net profit attributable to shareholders at 350 million yuan, up 43.2% [4] - The rise in lead and zinc prices due to supply shortages is expected to benefit the company's performance, with Q3 average zinc prices at 23,600 yuan per ton, up 13.2% year-on-year, and lead prices at 18,000 yuan per ton, up 10.9% year-on-year [4] - The company is actively integrating resources and expanding production capacity, with plans to invest approximately 5 billion yuan in the Jianglu mining area, which is expected to enhance resource reserves and production capacity [5] Summary by Sections Financial Performance - For Q3 2024, the company achieved revenue of 386 million yuan, a 30.7% increase year-on-year, and net profit of 135 million yuan, a 46.9% increase year-on-year [4] - The company’s production of zinc and lead concentrates in Q3 was 45,200 tons and 15,600 tons, respectively, with year-on-year increases of 4.18% and 3.39% [4] Market Outlook - The company is expected to benefit from high lead and zinc prices and resource integration, with projected EPS for 2024, 2025, and 2026 at 0.48, 0.93, and 1.27 yuan per share, respectively [5] - The estimated reasonable value range for the stock is between 13.54 and 14.02 yuan per share, based on a PE ratio of 28-29 times for 2024 [5] Valuation Metrics - The company’s revenue is projected to grow from 1.283 billion yuan in 2023 to 2.606 billion yuan in 2025, reflecting a growth rate of 74.7% [6] - The net profit is expected to increase from 343 million yuan in 2023 to 911 million yuan in 2025, with a net profit margin projected to rise from 26.7% in 2023 to 35.0% in 2026 [8]